This paper studies the dynamic structural relationship between the trade balance and the terms of trade by means of a time-scale decomposition. Our analysis is carried out using data obtained from ten developed economies; Australia, Austria, Canada, France, Italy, Japan, Norway, Switzerland, the...

The problem of business cycle symmetry is addressed within the context of time reversibility. To this effect, we introduce a time domain test of time reversibility, the TR test. In an application we show that time irreversibility is the rule rather than the exception for two well-known...